Global markets

America is still an economic and military powerhouse. But when Donald Trump is inaugurated as America’s 45^th president in January 2017, he could find it’s not so easy to win a trade war with Asia’s rising economies, and their growing middle classes. continue…

by David Buckland Posted in Editor's Pick, Global markets.

• save this article
• POSTED IN Editor's Pick, Global markets

A move up in bond rates, like we’ve seen over the last two months, inevitably feeds into the valuations of growth stocks. Add in any concerns about the near term outlook and the share price movement can be really extreme.

continue…

by Stuart Jackson Posted in Global markets.

• 1 Comments
• save this article
• POSTED IN Global markets

When Britain voted to leave the EU back on 23 June, it sent the British Pound (GBP) into a tailspin. It’s depreciated 18 per cent against the USD and AUD since the day before the vote. Brexit, and the weakened GBP, will have a material impact on the earnings and valuations of a number of ASX-listed companies doing business in the UK. But not all.

by Stuart Jackson Posted in Companies, Editor's Pick, Global markets.

Tagged

Brexit, IDP Education

• save this article
• POSTED IN Companies, Editor's Pick, Global markets
  
  Tagged
  Brexit, IDP Education

According to the IMF, “Among the globally systemically important banks, Deutsche Bank (DB) appears to be the most important net contributor to systemic risk”. So the news engulfing Deutsche Bank is a big concern for global markets – or at least it should be. continue…

by David Buckland Posted in Financial Services, Global markets.

Tagged

deutsche bank, IMF

• save this article
• POSTED IN Financial Services, Global markets
  
  Tagged
  deutsche bank, IMF

Arguably the greatest risk to investors today is an under appreciation of how significant a change in bond interest rates will be. And these rates can change even if central banks don’t raise their own short-term offerings. So discussions about what the US Federal Reserve bank does with the fed funds rate, or the Reserve Bank of Australia through its own open market operations, aren’t particularly helpful. continue…

by Roger Montgomery Posted in Global markets.

Tagged

bonds, GFC

• 5 Comments
• save this article
• POSTED IN Global markets
  
  Tagged
  bonds, GFC

These days, it’s not easy for investors to feel relaxed and comfortable. Pouring more fuel on investor anxieties is a report by the Bank of International Settlement that shows global debt spiralling out of control. continue…

by David Buckland Posted in Global markets.

Tagged

debt, interest rates

• save this article
• POSTED IN Global markets
  
  Tagged
  debt, interest rates

In this interview with Warren Moore, Roger discusses China’s G20, steel production and currency devaluations. 

by Roger Montgomery Posted in Global markets, Radio.

• 1 Comments
• save this article
• POSTED IN Global markets, Radio

With interest rates now at an all-time low, government bond markets have been perverted from a risk-free rate of return to a return-free rate of risk. This has never happened before. So how will it play out? The worrying answer is: nobody knows. continue…

by David Buckland Posted in Global markets.

• 7 Comments
• save this article
• POSTED IN Global markets

Global bond yields are the lowest they’ve been in 500 years. And, around the world, there are $10 trillion of negative rate bonds. This situation has prompted legendary US investor, Bill Gross, to comment: “this is a supernova that will explode one day”. So, how concerned should we be? continue…

by Roger Montgomery Posted in Global markets.

• 27 Comments
• save this article
• POSTED IN Global markets

When it comes to interest rates, these are strange days indeed. For starters, think about this: if you were to lend 100,000 Swiss Franc to the Swiss Government for 50 years, you’d yield a return of 98,500 Swiss Franc in 2066, given the interest rate of minus 0.03 per cent. continue…

by David Buckland Posted in Global markets.

• 5 Comments
• save this article
• POSTED IN Global markets